Darden Has Announced New Expectations Before 3Q16 Results
Revision of same-store sales growth
Until the recent announcement by Darden Restaurants (DRI), analysts were expecting same-store sales growth to be 2.7%. After the announcement, analysts revised their estimates upward to 3.6%.
Analysts also revised their same-store sales growth estimates for the next 12 months. For fiscal 4Q16, they raised their estimates from 2.7% to 2.9%. For fiscal 1Q17 and fiscal 2Q17, they maintained their estimates of 2.1% and 2.3%, respectively.
Revised EPS estimate
The company also announced that adjusted EPS (earnings per share) will be in the range of $1.18–$1.21. Analysts were expecting fiscal 3Q16 EPS to be $1.10. After the announcement, analysts revised their fiscal 3Q16 estimate to $1.16. They also raised EPS estimates for fiscal 4Q16, 1Q17, and 2Q17 to $1.07, $0.82, and $0.63, respectively, from earlier estimates of $1.05, $0.80, and $0.60, respectively.
The announcement also affected analysts’ ratings and recommendations.
You can gain exposure to DRI by investing in the iShares Russell Mid-Cap ETF (IWR), which has invested 0.14% of its portfolio in DRI. IWR has also invested 0.27% in Chipotle Mexican Grill (CMG), 0.13% in Domino’s Pizza (DPZ), and 0.08% in Dunkin’ Brands (DNKN).
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